With no capital gains, VAT, inheritance or wealth taxes, added to various tax incentives and full membership of the EU allowing the passporting of financial services across Europe, Gibraltar presents a myriad of tax planning opportunities to companies, investors and private individuals alike.
However, issues of residence and domicile are central to all offshore tax planning and require careful attention. Charles A. Gomez & Co. have the necessary expertise to help you avoid any of the pitfalls of relocation whilst ensuring your tax planning is really effective.
We and our clients accept that tax cannot be avoided – indeed we would never advise a client to try to do so. However, if used carefully and effectively, with professional guidance Gibraltar’s unique tax structure can help reduce your tax bill.
Our associate barrister-at-law, Nicholas Piñero is a fully accredited member of the Association of Taxation Technicians and can advise you on any local and cross-border taxation issues involving the UK and/or Gibraltar.
We also work closely with lawyers, accountants and financial advisers in other jurisdictions.
Gibraltar’s uniquely structured arrangements for High Net Worth Individuals (HNWIs) based in other jurisdictions to become ‘Category 2 Individuals’ offer not only a capped liability on declared income but also the opportunity to enjoy a Mediterranean life-style in Gibraltar and neighbouring Costa del Sol.
On successful application to the Gibraltar Government, Category 2 Status ensures a £70,000 maximum cap on your taxable income. In other in other words, no tax is payable on income above £70, 000 - at current tax` rates this would represent a maximum annual tax bill of £26,000. A wife or husband, as well as any dependants under 18 can be added to your Category 2 status and enjoy the same tax advantages
Not everyone qualifies for Category 2 Status. There are some restrictions about working and trading in Gibraltar – though there are significant exceptions about which we can offer advice – or whether you have lived in the jurisdiction previously. Successful applicants must also prove that they meet requirements about net wealth and own or rent a Gibraltar property of a sufficiently high standard for their exclusive use.
We offer a complete package as regards your Category 2 Application:
Although Category 2 Status is not suitable for those hoping to work in Gibraltar, the new High Executive Possessing Specialist Skills (HEPSS) Status caters for professionals who intend to relocate to here.
HEPSS individuals enjoy similar tax advantages to those of Category 2 Status and their taxable income has a maximum cap. However much an HEPSS individual earns, he or she will only be taxed on the first £100,000 of income. Taxed on a gross-income-based system, the current effective tax rate of 27.5%, means that the maximum income tax that a HEPSS individual will pay in Gibraltar is £27,500 per annum.
As with Category 2 Status, there certain qualifications must be met. An HEPSS individual should possess skills not readily available in Gibraltar; earn more than £100,000 per annum; have not resided in Gibraltar in the three years before applying; and faces similar accommodation requirements to those of Category 2 individuals (above).
The application process for HEPSS status is similar to that for Category 2 individuals outlined above and we offer HEPSS applicants a similar all-inclusive service to that for clients seeking Category 2 Status.